Self-Confident China Still Invests In Infrastructure
September 9th, 2008
While much of the developed world is mired in financial crises, China’s quest to become a first world country is continuing unabated with transport infrastructure spending continuing at break neck speed with no sign of any slowdown. The country’s confidence in continuing to invest heavily in this sector comes from amassing $US1.8trn in foreign currency reserves and limited exposure to the global financial crisis. This means the country has plenty of money in its coffers to support infrastructure spending without having to look overseas or rely on volatile money markets.
Port Development Crucial. The massive expansion of facilities at Port of Tianjin is an indication of the push for capacity expansion. The 30 sq km Dongjiang Port Area will be completed by 2010, and a further 10 sq km Bonded Port Area will be developed by 2012. The port plans to increase its throughput from 7.1m TEUs in 2007 to 10m TEUs by 2010. In addition, improvements in road and rail infrastructure will connect the port not only to the main hinterland areas of northern China, including Beijing, but also inland countries such as Mongolia and Kazakhstan. The scheme is part of a wider economic development project authorities hope will eventually rival the Pudong region of Shanghai and the Shenzhen Special Economic Zone.
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